Northvolt has announced the closure of its sole active battery cell production line in Skellefteå, Sweden, which is scheduled to cease operations by June 30, 2025. This development has raised questions about the future of Northvolt’s battery manufacturing facility under construction in Heide, northern Germany. Despite these concerns, the company asserts that work at the Heide site is progressing as planned amid ongoing restructuring discussions.
Recent reports from the German publication Der Spiegel indicated that Northvolt Germany TopCo GmbH, a subsidiary of Northvolt, has reportedly initiated restructuring proceedings. The article highlighted uncertainty regarding the completion of the Schleswig-Holstein plant. Northvolt Germany TopCo GmbH encompasses Northvolt Drei Project GmbH (formerly Northvolt Germany GmbH), which has secured approximately €600 million in German taxpayer funding through a convertible bond.
In response to inquiries from Electrive, Northvolt clarified that none of its German entities are currently insolvent. The company suggested that the referenced restructuring may pertain to a StaRUG process—a preventive restructuring framework introduced in Germany in 2021. This framework allows companies facing potential financial distress to restructure operations without entering formal insolvency proceedings, providing a bridge between out-of-court negotiations and traditional bankruptcy processes.
Northvolt emphasized that Northvolt Germany TopCo GmbH and Northvolt Drei Project GmbH operate as separate legal entities. TopCo manages all non-project-related activities in Germany and is funded exclusively by its Swedish parent, Northvolt AB, which is currently insolvent. Conversely, Northvolt Drei Project GmbH has access to alternative funding sources. However, according to NorthData, Northvolt Drei HoldCo GmbH, a wholly owned subsidiary of Northvolt Germany TopCo GmbH, fully owns the project company, indicating some structural connections remain.
The move announced in Sweden is said to have no immediate impact on the Heide project. “Work on the project and on the construction site is continuing,” a Northvolt spokesperson told electrive. “All current measures are being implemented in close coordination with KfW. The focus is particularly on value-enhancing infrastructure work.”
The closure of the Swedish production line is not expected to immediately impact the Heide project. A Northvolt spokesperson confirmed that construction and project work at Heide continue, with a focus on enhancing infrastructure in collaboration with KfW. The funding from the KfW convertible bond is designated specifically for the Heide site and cannot be used to address financial shortfalls or debts of Northvolt AB.
Investigations are underway in Germany to examine the approval and distribution of state aid to Northvolt, with the German Federal Audit Office reviewing the provided funding. Additionally, Mikael Kubu, a court-appointed administrator, is actively seeking a partial sale of the Northvolt group, negotiating the sale of various company assets, including the Arctic Circle plant and the German construction site.
Northvolt’s German spokesperson expressed optimism about ongoing discussions with potential investors, stating, “Northvolt AB is still in intensive discussions with potential investors—there is significant interest in the Heide location.”
Source: Electrive
